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Almost one-third of business executives have observed a marked rise in digital intrusions targeting their distribution systems during the previous half-year, as recently reported security incidents on prominent businesses have underscored this expanding risk to modern businesses.

Cyber threats climb priority lists for supply chain executives

Digital security concerns have climbed the list of priorities for procurement managers at hundreds companies worldwide across various industries including production, utilities and IT, according to latest industry research performed in early autumn.

High-profile security breaches result in significant monetary impacts

Latest cyber attacks at various well-known corporations have resulted in losses of millions of currency, shifting online protection from being mainly the concern of IT departments to becoming a primary priority for senior management and senior leaders.

The character of international commerce, how we consider international logistics networks and the digital supply environment are progressively connected,

remarked a leading sector leader.

Global factors intensify logistics worries

Earlier this year, purchasing directors were notably worried about international tensions, including ongoing tensions in various parts of the world, along with trade policies that weighed on worldwide business.

However, cyber threats are now competing with global tensions and commercial conflicts as the most significant danger for members of international trade associations.

Research shows broad effect

The research revealed that 29% of directors reported that companies within their distribution systems had been attacked by cyber incidents in previous months.

Significant automotive impact

A notable car company experienced factory closures and was could not to build automobiles for an entire month, following a digital breach that compelled the business to turn off computer systems across several international locations.

The monetary effect of this month-long manufacturing halt at Britain's largest automotive employer has been estimated at approximately 120 million pounds in missed earnings, or one point seven billion pounds in lost revenues, according to university research from a corporate finance expert.

Latest worldwide examples

In late September, a prominent Japanese brewing group became the newest corporation to be required to halt manufacturing at its domestic factories following a security incident.

The corporation, which maintains multiple industrial sites in its home country producing drinks and other products, announced that its transaction handling functions, along with shipping operations and call center services, had been disrupted following a network disruption resulting from the digital intrusion.

Growing interconnectedness generates weaknesses

Businesses are progressively assisted by external entities. No longer exist the era of considering an business as an entity functioning in separation.

Current major security incidents have acted as a strong reminder to businesses to allocate resources to robust online protection systems, to secure their own operations and retain customer confidence, prompting them to investigate how their distribution systems could become potential targets for hackers.